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CBS News
6 days ago
- Business
- CBS News
2 candidates for mayor of Pittsburgh talk budget challenges facing city
Amid questions surrounding Pittsburgh's budget challenges, the two candidates for mayor shared what they think needs to be done. It looks like a perfect storm: city vehicles on their last legs backed up at the repair garage, understaffing of police and paramedics resulting in burnout, runaway overtime, and concerns about the public's safety. At the same time, federal COVID-19 relief funds are drying up, and Downtown building assessments are falling. Pittsburgh City Controller Rachael Heisler says the city needs to level with the public and address the situation head-on. "We need to be more practical and honest with city residents, city businesses and city stakeholders about the fiscal health of the city, and I think we need to demonstrate some capacity for cost containment, look at places where we can grow city revenue, and start there," Heisler said. Mayor Ed Gainey's administration declines to call the situation a crisis, saying it's spent more money on vehicles than past administrations, has stepped up recruiting, and is trying to rein in overtime. Deputy Mayor Jake Pawlak said the financial reserves are healthy, but the administration is analyzing the situation and won't rule out a tax increase when it introduces its final budget next month. "Despite a popular narrative to the controversy, we take these decisions very seriously and we believe that we have a responsibility to make informed decisions with data," Pawlak said. The two candidates for mayor would like to avoid increasing taxes or laying off staff, but they say drastic steps are needed. First, by cutting what they see as wasteful spending. Republican candidate Tony Moreno said that money needs to be redirected to essential services. "If we can reprioritize those monies that are being wasted, we know that there's waste, we know that they're misspending money," Moreno said. Heisler has targeted unspent money in the city's $10 million-per-year affordable housing fund and singled out $16 million in Stop the Violence grants slated for community organizations. Corey O'Connor, the Democratic candidate for mayor, says he'll look at all spending with a fine-toothed comb, specifically the administration's penchant for consultant studies, including a $6 million comprehensive plan. "Are there contracts that we don't need anymore?" O'Connor said. "Are there contracts that are citywide that are millions of dollars that we've already done studies on before? How do we get back to the basics of running government again?" The Gainey administration has focused on affordable housing, but developers have complained that roadblocks and a lack of incentives have thwarted their projects. Both Moreno and O'Connor say the fiscal situation won't be fixed without growing the city with new residents and new tax revenues in a more business-friendly environment. "We're not focusing on growth and opportunity," O'Connor said. Lastly, both candidates believe they will succeed in getting payments in lieu of taxes from the city's non-profit hospitals and universities. But the city may be facing a deficit in the tens of millions of dollars and might need every cent to avoid hitting property owners with higher taxes.
CBS News
23-07-2025
- Business
- CBS News
Pittsburgh controller describes the city's financial situation as "precarious"
Pittsburgh City Controller Rachael Heisler's annual fiscal report found the city is spending more money than it's taking in. Heisler describes the city's financial situation as "precarious." The city is spending more money than it's taking in while failing to maintain its deteriorating fleet, adequately staff its public safety forces or even turn on most of the water fountains in the summer months. "We need to make sure that the city is handling its basic functions: keeping people safe and keeping things clean," Heisler said. Releasing her annual fiscal report on Wednesday, the controller says the city is not yet in a crisis, but will be unless steps are taken to rein in non-essential spending and raise new revenue. She says the city has spent $24 million more this year than last, and at mid-year has depleted 77 percent of its overtime budget, projecting it will outspend that budget by $20 million. "This is a significant increase and unsustainable," Heisler said. The city denies it is close to crisis but concedes overtime is a "long-term challenge." Still, in a statement, Deputy Mayor Jake Pawlak said union negotiations and unexpected increases in wage and real estate revenues may offset those increases. "While we believe that reforms to overtime usage will ultimately play a role in solving this problem, it's clear that process is taking longer than we projected to show the anticipated results," Pawlak said. "That being said, the scale of this issue is manageable, offset by savings elsewhere in the budget and does not give us cause for alarm." Heisler said the city must move aggressively to encourage job growth and negotiate a deal with the non-profit hospitals and universities for payments in lieu of taxes — something, she says, the Gainey administration has not achieved, which has filed challenges against tax-exempt properties. "When you're in active litigation against them, you're not going to hit a point where you're engaging in conversation about voluntary payments toward city operations," Heisler said.
